Trump's Digital Asset EO: No CBDCs, Yes To Blockchain, Crypto Participation 'Without Persecution'

U.S. President Donald Trump has signed his first cryptocurrency-centric executive order, and it's packed with some of the most crucial aspects of blockchain and digital assets that the community has been fighting for.

Trump signed and published the executive order Thursday, saying the EO will "promote United States leadership in digital assets and financial technology while protecting economic liberty."

Trump Reiterates Digital Assets' Importance in US Innovation

The EO's first section highlights the crucial role digital assets play in the country's innovation and economic development.

Trump noted that it is his administration's policy to support the "responsible growth and use of digital assets, blockchain technology," and other related technologies.

The crypto community has been anticipating a crypto-focused executive order from the president after he made promises to crypto users during the campaign period, which significantly helped him secure majority of the crypto voter community's support.

Key Highlights of the Executive Order

Titled "Strengthening American Leadership in Digital Financial Technology," the executive order addresses some of critical aspects of blockchain and crypto technology that many crypto users have been trying to highlight over the years.

• On the use of public blockchains

The EO specified that the ability of retail and institutional investors to have access to and use open public blockchain networks "for lawful purposes" should be protected and promoted, all "without persecution."

This specific aspect of the executive order addresses concerns from the crypto community in relation to regulations that affect their ability to access blockchain technology. Many crypto users have accused the Securities and Exchange Commission (SEC) under former Chair Gary Gensler of persecuting the industry.

• On blockchain technology participation

The EO also stated that Americans are allowed to "develop and deploy software" around blockchain technology, and they are allowed to "participate in mining and validating."

Furthermore, American users shouldn't be persecuted when they transact with other people using digital assets. No "unlawful censorship" should be implemented around the said activities.

• On individual holders of cryptocurrencies

This specific part of the executive order appears to be a nod to his May 2024 promise to the industry that he will support Americans' "right to self-custody" in terms of individual crypto holders.

• On USD-backed stablecoins

Trump has always been clear about promoting the sovereignty and dominance of the U.S. dollar. He reiterated the same views in the executive order, saying the development of "lawful and legitimate dollar-backed stablecoins worldwide" should be promoted.

• On banking access for all

In what could be a subtle call-out to the alleged Operation Choke Point 2.0 (OCP 2.0) that the Biden administration supposedly orchestrated against crypto entities, Trump's EO noted that his government will protect and promote "fair and open access to banking services for all law-abiding individual citizens and private-sector entities alike."

Crypto executives recently revealed how OCP 2.0 stifled their blockchain and crypto projects' growth through "debanking" – a term used to describe the alleged prevention of certain individuals and entities from accessing banking services.

• On regulatory clarity

Trump has called out the SEC multiple times during campaign over its "regulatory overreach," supporting the complaints of crypto users and industry players who were slapped with lawsuits and Wells notices during Gensler's reign.

The executive order noted that the administration will provide "regulatory clarity and certainty built on technology-neutral regulations, frameworks that account for emerging technologies, transparent decision-making, and well-defined jurisdictional regulatory boundaries."

• On central bank digital currencies (CBDCs)

The president and many of his political allies have raised concerns about CBDCs and how they might be used by the government to surveil Americans' financial activities.

The executive order noted that CBDCs "threaten the stability of the financial system" and also calls into question negative effects on "individual privacy," thus the issuance, establishment, and use of CBDCs within the U.S. is prohibited.

• On further digital asset industry development

Aside from specifics around how digital asset and blockchain technology should be treated in the U.S., Trump's EO also established a presidential Working Group on Digital Asset Markets which will identify "all regulations, guidance documents, orders, or other items that affect the digital asset sector."

The working group is expected to submit to the Chair recommendations regarding digital asset regulation in two months, and within 180 days from the order's signing, the working group will submit a report to the president.

• On crypto treasuries

The presidential working group has also been ordered to "evaluate the potential creation and maintenance of a national digital asset stockpile" that could possibly be taken "from cryptocurrencies lawfully seized" by the federal government.

The said provision is a very critical point of conversation in the crypto space, with many pushing for a national strategic Bitcoin reserve, but the EO indicates that a U.S. reserve will not just be around BTC but also on other cryptocurrencies.

Crypto Community Hails Trump's Support

David Sacks, the recently-appointed crypto and AI czar under the Trump administration, was beside Trump when he signed the EO. Sacks also said in a Thursday interview that the goal was to drive crypto and blockchain innovation "onshore instead of offshore."

Coinbase CEO Brian Armstrong said he was bullish about the development, Custodia Bank Founder and CEO Caitlin Long noted how the EO excluded the central bank and the Federal Deposit Insurance Corporation (FDIC) from the working group toward digital asset innovation.

Notably, Long was among the crypto executives who alleged that her company was targeted by the FDIC, which is among the agencies accused by the crypto industry of engaging in coordinated attacks against crypto firms.

Electric Capital Co-founder Avichal Garg said the EO's signing is a "big deal" for the industry.

Crypto advocacy non-profit Stand With Crypto noted that crypto is a "national priority" and thanks to the efforts of the entire community that Trump signed a crypto-centric EO. "You made your voices heard at the ballot box and beyond," the group said.